Auditing

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Corporate governance is the process that owners and other major players surrounding an organization are held accountable to for the company’s requirements and resources. Corporate governance can also play a big role in the audit process. Research corporate governance and auditing and answer the following questions:

  • What are 2 of the principles that surround corporate governance? How do they tie into the recent legislation that was put into place to resolve ethical challenges and changes within the last decade? 
  • The Generally Accepted Auditing Standards (GAAS) are based upon 10 audit guidelines that fall into 3 categories. Briefly describe the 3 main parts of the audit, and give examples of what activities would occur in each category. 
  • Describe the role of the audit committee. Include the outside directors in your discussion. Compare and contrast the oversight responsibility and the primary responsibility of the audit committee. 
  • Explain how the Sarbanes-Oxley Act impacted the auditing profession. 
    • Describe the key role of the PCAOB. 
    • Do you feel that it has met its objective? 
    • What—if any—changes would you want to add to the scope of the PCAOB? 

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